Hiring growth slows on rising fears for state of UK economy

The City has experienced skills shortages in areas like compliance, pushing up salaries

NEW WORRIES about the strength of the economy have made employers more cautious, according to recruitment figures published today.

Permanent and temporary vacancies growth fell to a seven-month low while pay growth remained modest, the KPMG and Recruitment and Employment Confederation (REC) stats show.

The placements index fell from 52.7 in February to 50.8 in March. A score above 50 represents growth.

But some industries are accelerating – IT and computing staff are now the most in demand, with an index reading of 58.4 up from 57.2 a year ago.

“Recruiters report businesses are struggling to find people with the right skills and experience as candidate availability declines,” said REC chief Kevin Green.

“It is a worrying trend that is particularly problematic across IT and engineering. Persistent skills shortages in these areas could have a disastrous impact on critical infrastructure projects, especially if employers can’t find the talent they need to jump-start new ventures in energy, transport and construction.”